Listing is “Sale Pending.” Make a Back Up Offer? Let’s be careful…

Bandon is a bit of a smaller market and buyer energy seems a bit pent-up because property inventories are (relatively speaking) in short supply.  And so, sometimes clients want ‘inside’ information about a pending transaction. And if they’re very serious about a particular property, we’ll process paperwork so they can make a  ‘Back Up Offer.”

First Position is an offer that puts the property in ‘Sale Pending’ status. Second Position is waiting in line with an accepted Back Up Offer to see if the First Position contract completes or not.

Most Agents completely respect when we seek more information.

But here’s the thing:

Seeking private information about a contract we are not party to is, putting it bluntly, almost unethical. As would it would also be for the Sellers to disclose what is, essentially, confidential information. Asking “How’s it going” solicits an opinion that could get someone in trouble.

By acceptance of a Back Up Offer, the Sellers have agreed to inform Back Up Offerors about the status of the First Position contract.  Here is copy of the the relevant text in the “Back Up Offer Addendum”:

14 (2) If Seller formally and completely terminates the First Position Transaction in writing with the First Position Buyer, Seller shall promptly notify Buyer in
15 writing that Buyer has been automatically moved to First Position (“Notification”)

Backup Offerors **need** to have the Sellers “formally and completely terminate” the prior agreement. Otherwise we really want nothing to do with it. Aggrieved parties could have grounds for lawsuits.

We’ve been made aware that, hounding the Listing Agent, like: emailing and texting / phone calling can be construed as an attempt to interfere. (No kidding.)

Having said so…

…most Agents are  willing to technically “bend the rules” to share what they feel is appropriate.

Out of respect, we (Kristin and I) really don’t want to interrupt the Listing Agent with uncomfortable questions to which they shouldn’t feel compelled to respond. This is especially true in situations where the First Position offer seems solid.

We’re grateful to have the opportunity to assist buyers (and sellers, naturally.) Communicating these notions with clients is exactly what they should expect and why they should seek independent representation.

We will always operatine to keep the separation of interests very clean and unimpeachable.

 

Marijuana Stocks Could Be a Buzzkill – Barron’s

We are recently informed that over-production in Oregon has resulted in crop price collapse and financial trouble for some early property investors in this space. Simply passing on news and making our followers aware …

U.S. cannabis sales already generate $50 billion annually, versus $60 billion for wine and about $75 billion for tobacco.

https://www.barrons.com/articles/canada-pioneers-new-industry-in-marijuana-1522421400

Zoning Change Meeting at City Hall. Opinion: “Council Aims to Damage Vacation Rental Business in Bandon.”

Zoning Change meeting Wednesday 1/31/2018 5:30pm Bandon City Hall.

With permission we are quoting, and publicly recirculating a message discussing Bandon Zoning Change proposals. These comments are courtesy of  tenured and respected Bandon real-estate professionals.

Please feel welcome to circulate…

“The current Planning Commission seems to relish wielding their hammer and restricting private property rights. The Planning Department seems to be egging them on by repeating over and over that they do not have to approve them. But they certainly are accepting the $780 Application Fee.”

“I recently helped clients get one on the second meeting but they ROASTED me on the first meeting. They approved one and then rescinded it later because the language says it is for existing dwellings and it was a brand new home!!

“I do not know why they are so against Vacation Rentals but they are and it is true that it restricts what private property owners can do and therefore impedes real estate sales. Also it is just wrong as Vacation Rentals are clearly one of the CD Zone intended uses set aside for only the westerly strip of CD zoned land and serving the purpose & intention of the Comprehensive Plan & Zoning.

“I strongly believe that if living near VRs is unacceptable to someone, they should not buy in the CD Zone, obviously. We should all have to play by the rules, but the Commission is trying to re-write them for some unknown select group that apparently did not research before purchasing their homes. Also, there are strict density rules already, not more than 30% of homes within 250 feet, and many other requirements already in place, so any problem associated with a Vacation Rental has been addressed.

“A VR is held to a much higher standard than a normal neighbor, it must be at or above the care level of the neighborhood and from a practical standpoint you are not going to get guests to pay hundreds of dollars to stay in a run down place. They are allowed no noise complaints, the guests cannot park on the street, Guests must sign acknowledging our pet leash laws, where beach accesses are, etc..

“And VRs bring money to Bandon!”

“Transient Occupancy Tax and all the money spent on a holiday weekend. Money spent in Bandon makes a vibrant, well-kept community!  CD Zoning is one of the intended uses and is regulated enough!”

Below is a blurb on the circumstances of the meeting Wednesday evening:

Zoning Change: Attention vacation rental owners and land owners in CD-1 Zones in city limits.

“The city of Bandon is working on changing several codes, rules and conditions pertaining to vacation rentals. If you have vacant land in CD-1 zones the cities changes could have a negative impact on your property value and use tremendously.

“The city of Bandon is considering doing away with some CD-1 zoned areas altogether. So if you bought land in a CD-1 zone with the intention of using it someday in a use that has to be in a CD-1 zone you might lose out. Another item of concern is that the city is considering making it a rule that a house has to be at least 5 years old before they will consider allowing it to be a vacation rental. So if you build a house in a CD-1 zone and want to flip it for a profit new buyers looking for a house as a vacation rental would not be able to buy the house and use it as a vacation rental. This would limit potential buyers hurting sellers and realtors.

These changes could hurt property values in some cases and intended uses for others. If you are a land owner, realtor, developer/contractor the cities decisions could affect you.

“Come to the Planning Commission ‘work session’ it is being held this Wednesday, January 31st 2018 at the city hall at 5:30 PM in the city council chambers.”

Bandon Life – “As West As It Gets” The Jan 31st Lunar Eclipse at Cape Blanco

Bandon Life! We are “As West As it Gets.” No point on the continental US is further west.

Thinking of where to watch the eclipse this Wednesday morning? As the westernmost part of the US, Cape Blanco provides the best possible vantage. This is the “Bandon Life!”

Just as the moon is setting:

Full Eclipse begins 4:51:47 am
Maximum Eclipse at 5:29:51 am
Full Eclipse ends 6:07:51 am

For more info:
https://www.timeanddate.com/eclipse/lunar/2018-january-31

Of course this is all weather dependent… but it looks like it might work out:


We’ll post photos, etc.